The exemption, released by the U.S
Department of Labor’s Employee Benefits Security Administration (EBSA),
also imposes conditions to protect plans and their assets.

PTE 96-23 is a class exemption under the Employee Retirement
Income Security Act (ERISA) that allows in-house managers of large
employee benefit plans to engage in a wide range of transactions with
related parties. According to EBSA, the exemption imposes conditions to
protect plans and their assets, including: a limitation on the types
of parties that may engage in transactions with the INHAM; the adoption
by the INHAM of policies and procedures designed to assure compliance
with the conditions of the exemption; and the engagement of an
independent auditor to conduct an exemption audit on an annual basis and
the issuance by the auditor of a written report with specific findings
regarding the INHAM’s level of compliance with the class exemption.

The final amendment to PTE 96-23 includes four parts:

The general exemption that allows the portion of a plan that
is managed by an INHAM to engage in transactions with virtually all
party in interest service providers except the INHAM or a person related
to the INHAM.

Limited relief for certain transactions involving employers
and their affiliates who cannot qualify for the general exemption,
including relief for the lease of office or commercial space between the
plan and the sponsoring employer.

Definition of certain terms used in the exemption.

The effective date of the changes adopted under the amendment.

The final amendment expands the general exemption to include
relief for joint venturers in a company that is majority owned by the
employer. The amendment also expands relief for the leasing of office
or commercial space to an employer.

The final amendment to PTE 96-23 is to be published in the Federal Register on Friday.